Canadian Retailers Go Green By Retrofitting Lighting

Canadian retailers have gone to great lengths recently to tout their environmental and social policies, motivated by the economic benefits as much as by altruism.

Walmart Canada, Loblaw and Canadian Tire are among the big retailers trumpeting aggressive policies to save energy and minimize packaging. Some are even publicizing efforts to protect depleted fish species and ensure decent working conditions at their suppliers.

The companies may have the best intentions but there's also no denying that green practices are simply good business. Saving energy cuts costs, while touting policies to protect the environment strikes a positive chord with consumers and investors alike.

"The primary reason is that they have come to recognize that there are significant business benefits in doing so. It is not altruistic," said Mel Wilson, who heads the sustainable business team at PricewaterhouseCoopers in Calgary.

"It's not like people just woke up one day and their personalities had changed. They have recognized that this is good for business."

Walmart Canada, a subsidiary of U.S. retail giant Wal-Mart Stores, said last month that it stands to save about $140 million over the next five years through strategies aimed at energy reduction, waste diversion and its supply network.

Canadian Tire, the country's large automotive and household goods retailer, said last week that it would be among the first companies in the country to highlight its progress in its quarterly and annual reports.

"What we felt is that, if we ingrained it into the processes and how we do business, then sustainability in itself becomes sustainable," said Stephen Wetmore, the company's chief executive. "That's the way we've approached it, otherwise we didn't think we would have a long-term, viable approach to the environment."

Loblaw, the country's biggest grocery store chain, is working with environmental groups to ensure it only buys seafood that is sustainable and not at risk of depletion.

For most retailers, the simple cost of doing business is what has driven them to adopt the initiatives. With energy costs trending higher again, companies have looked to green forms of energy such as solar power to shave costs.

"What is driving it is the mechanism that gets their cost structure and their energy costs down," said Bill Chisholm, a retail analyst at Toronto investment adviser MacDougall, MacDougall and MacTier.

"It's a bit of PR in terms of being green, but at the same time they are hoping to get their energy costs down."

Walmart Canada estimates it will save about $70 million in costs over the next five years just with its energy-savings plan including low-wattage light bulbs, energy-efficient cooling systems and solar panels.

Reporting by  The Vancouver Sun

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